The global 5G infrastructure market was valued at USD 2.1 billion in 2020 and is expected to reach USD 83.7 billion by 2030, growing at a 45.4% CAGR from 2021 to 2030.
The construction of 5G infrastructure has become a global priority due to the proliferation of connected devices, increased data consumption, and the requirement for ultra-fast and reliable communication networks. Factors such as the demand for increased network capacity, reduced latency, and improved network performance to support emerging technologies such as the Internet of Things (IoT), autonomous cars, Augmented Reality (AR), and Virtual Reality (VR) are driving market expansion. Furthermore, governments and telecoms firms are aggressively investing in the development and implementation of 5G networks, opening up attractive potential for infrastructure providers
The COVID 19 crisis has slowed the development of 5G infrastructure in a number of countries. The precautions required to control the spread of the disease have delayed the finalisation of the 5G infrastructure standard, which is now slated to take place by the end of 2020. With the persisting issues of coronavirus, numerous nations, including Spain, France, India, Austria, and the United States, have postponed their 5G spectrum sale. For example, India's Department of Telecommunications has postponed its 2021 spectrum auction. This development has had a negative impact on several manufacturers and telecommunications carriers in the industry. Due to the possibilities of 5G to service multiple industries during this crisis, a few suppliers are working on an ambitious 5G deployment strategy in the years 2020-2021. In the healthcare industry, a 5G smart robot can aid with remote therapy. In China, for example, numerous hospitals in Wuhan are utilising a 5G network to give real-time help to patients in remote places. As a result, 5G offers enormous potential for crisis help. However, the 5G implementation delay is restricting its application. Following the epidemic, the market is predicted to rise at an exponential rate.
5G Infrastructure Market: Drivers
The global 5G infrastructure market is expected to grow due to factors such as increased demand for mobile broadband services and the development of M2M/IoT connections. The growing acceptance of virtual networking architecture in the telecom sector, decreased latency in 5G, and an increase in mobile data traffic are driving the growth of the 5G infrastructure market. The Asia-Pacific region's increasing demand, particularly in the consumer electronics and industrial automation segments, is likely to provide attractive prospects for the 5G infrastructure business.
5G Infrastructure Market: Restraints
Higher frequencies are a significant advantage in the creation of a 5G network. However, all high frequencies (radio spectrum) are already in use for a variety of uses, including telecommunications and government organisations. It is critical for the development of 5G infrastructure to have access to these high-frequency spectrums. There is a problem in accessing certain frequency bands since they are already assigned for various uses. However, there is no firm timeline for when wireless companies will be granted access to these spectrums in order to build 5G infrastructure. Different regulations are now being created by various government entities throughout all areas.
5G Infrastructure Market: Opportunities
The Internet of Things (IoT) is revolutionising numerous businesses by linking various types of devices, appliances, systems, and services. Wide acceptance and continual developments in the Internet of Things (IoT) are among the factors reshaping various sectors. IoT is one of the use cases supported by a 5G network; for example, it allows communication between a huge number of sensors and linked devices. IoT application needs may be divided into four categories: high-power, low-latency, low-power, and long-range IoT applications. The 5G infrastructure market is likely to gain pace in order to satisfy the requirements of new IoT applications, which are classified as huge machine-type communication and mission-critical applications. In addition, the requirement to provide continuous Internet access to an expanding number of devices, as well as a reduction in power consumption, is propelling the 5G infrastructure industry forward.
5G Infrastructure Market: Segmentation
The 5G infrastructure market is segmented on the basis of communication infrastructure, network technology, chipset type, application.
Based on communication infrastructure, the 5G infrastructure market is divided into four segments: small cell, macro cell, radio access network, and distributed antenna system. The market is classified into four segments based on network technology: software defined networking, network chipset type virtualization, mobile edge computing, and fog computing. The market is divided into chipset types such as application specific integrated circuit, radio frequency integrated circuit, mmWave integrated circuit, and field programmable gate array. It is classified into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation, and others based on application.
Based on core network technology, the 5G infrastructure market has been divided into two segments: network function virtualization (NFV) and software-defined networking (SD). In a 5G network, NFV will play a crucial role in allowing network operators to increase their network capabilities while also offering effective and efficient network operation. NFV will enable network slicing and distributed cloud in 5G, allowing for more flexible and programmable networks in the future. 5G network operators want network infrastructure that is fast to operate, accessible from everywhere, efficient in resource utilisation, and scalable to meet the changing demands of network services. All of these requirements may be met efficiently with the aid of NV technology. As a result, this sector will have a large market share throughout the projection period.
5G Infrastructure Market: Regional Landscape
Asia-Pacific dominated the 5G infrastructure market in 2020 and is expected to develop rapidly throughout the forecast period. The expansion of the Asia Pacific 5G infrastructure market may be ascribed to dynamic changes in the acceptance of new technologies and developments in organisations across many industries. The expanding development (such as R&D activities, investments, and collaborations with various organisations) connected to the 5G market in countries such as Japan, China, South Korea, and Australia would primarily fuel the expansion of the Asia Pacific 5G infrastructure market. 5G is well-suited to the Asia Pacific area as it allows simultaneous connection for various devices and has minimal latency, which increases total system performance. The Asia Pacific 5G infrastructure industry offers enormous prospects in smart cities. Several Asian nations have either begun or are intending to begin the implementation of smart city initiatives. China is the most important market in Asia Pacific for smart city development. It is one of the primary nations engaging in the 5G network infrastructure development. The Chinese government has coordinated and boosted 5G research in the country. As a result, the Asia Pacific market for 5G infrastructure is predicted to develop at the fastest CAGR in the coming years.
Following Asia Pacific, North America is expected to have a significant market share. The United States is likely to experience substantial development as a result of increased demand for high bandwidth and data traffic. The presence of multiple significant 5G infrastructure providers in this region is anticipated to stimulate product demand. The growing usage of technology such as artificial intelligence, augmented and virtual reality, and IoT will benefit the US market.
The study includes competitive analyses and profiles of major market participants such as AT&T, Huawei Devices Co. Ltd., Ericsson, Intel Corporation, Mediatek Inc., Nokia Corporation, Qualcomm Technologies Inc., Hewlett Packard Enterprise, Samsung Electronics Co. Ltd., and Verizon. To boost market penetration and improve their footing in the sector, these main companies have used a variety of techniques, including product portfolio growth, mergers and acquisitions, agreements, regional expansion, and partnerships.
- March 2020: Samsung Electronics Co. Ltd. announced a cooperation with Marvell to improve infrastructure innovation across radio access network segments. The fundamental goal of this partnership is to create sophisticated radio unit designs to fulfil the rising need for computing power.
- February 2020: CommScope Inc. offered a number of antenna solutions, connections, and power choices to assist the fast expanding 5G deployment. The company's goal is to supply wireless operators with smart and rapid solutions for building the 5G network.
5G Infrastructure Market is segmented as follows:
By Communication Infrastructure
- Small Cell
- Macro Cell
- Radio Access Network
- Distributed Antenna System
By Network Technology
- Software Defined Networking
- Network Chipset Type Virtualization
- Mobile Edge Computing
- Fog Computing
By Chipset Type
- Application Specific Integrated Circuit
- Radio Frequency Integrated Circuit
- mmWave Integrated Circuit
- Field Programmable Gate Array
- Automotive & Transportation
- Energy & Utilities
- Consumer Electronics
- Industrial Automation
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Rest of Latin America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
Scope of the Report:
Growth momentum & CAGR
Accelerate at a CAGR of 45.4%
YoY growth (%)
North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa
Current Market size
USD 2.1 Billion
Forecast market growth
USD 83.7 Billion
Our market research is an extensive, iterative process that takes into account a combination of primary and secondary research tools with the aim of minimizing deviation and producing the most precise estimate and prediction. For the future course of action, this approach meticulously outlines the actual changes and industry trends. It gives incredibly valuable data that is drawn from the insights and opinions of analysts and professionals. Our papers include in-depth research and analysis based on several factual inputs obtained from expert interviews, accurate data, and local information.
Market Size Estimation
The overall size of the market has been estimated and validated using both top-down and bottom-up methods. The sizes of other market subsegments have also been thoroughly estimated using these methodologies.
In the top-down technique, the market is divided into segments based on the percentage share of each segment. This method assisted in determining the size of each segment's market. The market size of each segment and its sub-segments was then divided into regional market sizes. This Approach helps mainly with the new Product Launch. It uses Multi-variate Regression Model coupled with Vendor based primary research inputs to forecast to the Market Size.
In the Bottom-Up approach, comprehensive study of key players has to be done wherein we add the market size of the major key players to understand the national market size which helps to determine the regional market size and eventually the complete market size. Companies annual report along with data from paid and unpaid resources like reports from government agencies and organizations like world bank provide the data for this approach.
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